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I disagree. Wealth today is preserved thanks to "deflationary" instruments, whose value rises over time - like gold, silver or even stocks. Rich people take a l

by mirzap 4y ago

I disagree. Wealth today is preserved thanks to "deflationary" instruments, whose value rises over time - like gold, silver or even stocks. Rich people take a loans of inflationary $$$ against their deflationary assets to generate economic activity. With that they not only preserve their fortune, but generate a lot more thanks to that economic activity they initiated. Bitcoin will allow that to everyone, not just the rich people. Also, it worked for thousands of years with gold. Whole civilisations have run on gold, for thousands of years. Every time in history when some innovation comes up people doing the old way were saying "that's not possible. it will never work. you don't understand the basics of X". History surely rimes.

lxgr 4y ago
What incentivizes people to spend their Bitcoin today (whether as a business expense or for their cost of living) rather than holding on to them until tomorrow, getting richer passively? Would lending be allowed in your model? If so, what makes it different from the status quo (fractional reserve banking and ultimately debt becoming money itself)? If not, how do I start a business or purchase a home without the lump sump required to do so under my pillow? How do you adapt the monetary base to increased or decreased production capacity in a world based on the Bitcoin standard? Not every fundamentally broken economic model is an innovation, and just because everybody tells its proponents so does not make this idea some kind of underdog stroke of genius.
- throwup 4y ago
  > What incentivizes people to spend their Bitcoin today (whether as a business expense or for their cost of living) rather than holding on to them until tomorrow, getting richer passively? The same thing that incentivizes people to spend their USD today instead of passively getting rich using VTSAX
  - boc 4y ago
    USD is inflationary by design. The intent is to encourage investment, not stuffing it under the mattress. So no, your example doesn’t work.
- mirzap 4y ago
  Your daily needs. If you get paid in bitcoin you have to spend some in order to make living. Bitcoin, in contrast to gold, is infinitely divisible. As production capacity increases and Bitcoin spreads to billions of people smaller and smaller monetary units will be used.

by mirzap 4y ago

lxgr 4y ago

What incentivizes people to spend their Bitcoin today (whether as a business expense or for their cost of living) rather than holding on to them until tomorrow, getting richer passively? Would lending be allowed in your model? If so, what makes it different from the status quo (fractional reserve banking and ultimately debt becoming money itself)? If not, how do I start a business or purchase a home without the lump sump required to do so under my pillow? How do you adapt the monetary base to increased or decreased production capacity in a world based on the Bitcoin standard? Not every fundamentally broken economic model is an innovation, and just because everybody tells its proponents so does not make this idea some kind of underdog stroke of genius.

throwup 4y ago
> What incentivizes people to spend their Bitcoin today (whether as a business expense or for their cost of living) rather than holding on to them until tomorrow, getting richer passively? The same thing that incentivizes people to spend their USD today instead of passively getting rich using VTSAX
- boc 4y ago
  USD is inflationary by design. The intent is to encourage investment, not stuffing it under the mattress. So no, your example doesn’t work.
mirzap 4y ago
Your daily needs. If you get paid in bitcoin you have to spend some in order to make living. Bitcoin, in contrast to gold, is infinitely divisible. As production capacity increases and Bitcoin spreads to billions of people smaller and smaller monetary units will be used.